- Monetary Authority of Singapore (MAS) will require offshore-focused crypto and stablecoin firms incorporated in Singapore to drop or legalize their operations by June 30, 2025.
- Licenses for companies serving overseas clients will be rarely granted, according to MAS.
- This change is intended to address concerns over money laundering and to protect Singapore’s reputation.
- There are different rules for service providers operating in Singapore compared to those serving clients outside the country.
- Major firms like Circle and Paxos already have appropriate Singapore licenses and will not be impacted by the new rules.
The Monetary Authority of Singapore (MAS) announced that crypto and stablecoin businesses incorporated in Singapore but mainly serving clients outside the country must either stop their offshore operations or secure a rare license by June 30, 2025. This move directly affects companies registered in Singapore that do not provide significant services within its borders.
According to MAS, the new approach divides digital token service providers into two groups: those servicing customers in Singapore and those targeting clients overseas. Providers with local operations must be licensed under Singapore’s Payment Services Act. Businesses focused on foreign clients are regulated under the Financial Services and Markets Act, but the regulator made clear that these firms will seldom be granted licenses.
MAS stated its main concern is the risk of money laundering and the possible damage to Singapore’s reputation if companies use the city-state only as a legal base while operating elsewhere. Without substantial activities or a presence in Singapore, MAS said effective supervision is very difficult. MAS previously warned firms in its October consultation that there would be little time to adapt, emphasizing the need to either move business onshore or exit Singapore.
The revised framework has already been in effect for firms serving Singapore. The new offshore rules are coming into force now, leaving impacted companies with a short window to comply. Firms such as Circle and Paxos already possess “Major Payment Institution” licenses and have active local operations, so these changes will not affect them.
Lawyers from Gibson Dunn discussed these rules on LinkedIn, noting that being “in Singapore” requires not just servicing local customers, but also having on-the-ground operations. This matches the MAS position on regulatory oversight.
Full details and MAS feedback are available in its official results document.
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